Angola – Personal Income Tax Code Amended

The Personal Income Tax (PIT) Code has been amended by Law No. 28/2020, of 22 July 2020, which will enter into force on August 22nd, 2020.

Amongst the enacted amendments, we highlight the following:

Extension of the concept of ancillary remuneration to all rights, benefits, or patrimonial or financial advantages not included in the main remuneration.

• Repeal of the PIT scope rule regarding “profit distribution in benefit of the partners of purely civil companies, with or without commercial form”.

• Elimination of rules that excluded certain remuneration from the PIT scope, namely end-of-career bonuses, allowances for failure, rent allowance, vacation, and Christmas bonus.

• Exclusion from PIT of transport subsidy up to a monthly limit of AKZ 30.00

• Exclusion from PIT to food allowance up to a monthly limit of AKZ 30.000.

• Elimination of the exemption for nationals aged over 60 and for natural persons performing military and paramilitary service in Defence and Internal Order bodies.

• Changes in applicable tax rates:
a. employees, civil servants, and holders of corporate bodies (Group A): rates now vary between 10% and 25%;
b. self-employed persons carrying out the activities in the list of professions attached to the PIT Code (Group B) and remuneration for industrial and commercial activities under the minimum profit table (Group C): tax rate is now 6.5% or 25%, depending on whether or not withholding tax applies;
c. Services provided by non-tax resident workers in Angola: 15% (rate provided for in the Corporate Income Tax Code).

• Inclusion of sports arbitrators, sports coaches, mediators, and other parties in extra-judicial dispute resolution procedures in the list of professions attached to the PIT Code.

• Review of the Minimum Profits Table. This Law repeals the previous acts that amended the PIT Code, namely Law No. 9/19, of 24 April 2019, and Law No. 28/19, of 25 September 2019.

GTU will keep monitoring these matters closely and will provide you with the latest information through our updated system which gives online access to all the tax information you need.